HIGHLIGHTS
*Companies will have to pre-register electronically for the annual H-1B lottery, and then file ‘full-fledged applications’
*The documentation is exhaustive, especially for employers, like IT service companies, who place their H-1B employees at client sites
*It's feared that the new rule will give more leeway to the USCIS in deciding who can work in America
MUMBAI: From April, the filing season for the H-1B applications, companies hiring foreigners to work in the US through this popular work visa route will have to pre-register electronically for the annual H-1B lottery, and then file ‘full-fledged applications’ (referred to as petitions) for the winners.
Currently, petitions have to be filed upfront, together with all supporting evidence, just for entry into the lottery. The documentation is exhaustive, especially for employers, like IT service companies, who place their H-1B employees at client sites. The change will result in significant savings of administrative costs for the sponsoring companies (those hiring foreign employees). The move has been approved by the US Office of Management and Budgeta unit of the US president’s executive office.
Given the protectionist regime of Donald Trump’s administration, it is feared that the new rule will give more leeway to the US Citizenship and Immigration Services, which is the immigration arm of the US government, in deciding who can work in America.
Annually, only 65,000 H-1B visas are allotted under the regular cap (also known as general quota). An additional 20,000 visas are allotted under the master’s cap (for those having an advanced degree from US universities). Sponsoring employees have to submit the applications in the first week of April and within days the quota is met owing to which a random lottery mechanism is adopted. For the 2018-19 season, the US agency received 1.9 lakh applications. Indians typically garner more than 60% of the H-1B visas. Tech companies like Cognizant, TCS, Infosys and Wipro are among the top hirers.
TOI had analysed the fall agenda in its October 19 edition. One of the items dealt with electronic registration, with the object of enabling USCIS to “more efficiently manage the intake and selection process for H-1B applications”. Approval by the OMB is the first step towards a change in the H-1B filing mechanism. Next follows publication of the draft proposal in the Federal Registry, and receiving and considering public feedback —a process that can take three-six months. The proposal is then finalised.
USCIS director Francis Cissna has indicated that the aim is to finalise the proposal in time for April 2019.